South African property investment fund manager and developer, Equites Property Fund announced today that it has successfully raised R650 million in a private placing of shares with South African institutional investors.
There was keen interest in the company and the offer was significantly oversubscribed. Equites placed 65 million shares with a broad base of high quality investors at an issue price of R10.00 per share.
Andrea Tavern-Turisan, CEO of Equites, said “We are delighted with the outcome of the placement process. The proceeds will be used to reduce interest-bearing debt to less than 5% of loan-to-value. The fund has an attractive pipeline of significant A-grade industrial developments and A-grade and brownfield acquisitions which will be funded by debt. Equites has secured a R600 million facility with Nedbank to undertake these projects.”
Equites will be listing in the main board of the JSE in the “Industrial and Office REITs” sector on 18 June 2014.